PSCU and Co-op Solutions Announce Agreement to Combine
PSCU and Co-op Solutions (“Co-op”), two leading credit union service organizations (CUSOs) and financial technology solutions providers, today announced entering into an agreement to combine. Together, the companies will be better positioned to provide credit unions with innovative technology, unparalleled services, increased scale and differentiated value, fostering long-term success and sustainability for the credit union movement.
Charles E. (“Chuck”) Fagan, currently PSCU’s president and CEO, will be named as CEO of the new combined organization.
“This is a transformative opportunity for both PSCU and Co-op,” said Fagan. “Our member-owned companies have been respected industry assets for more than 40 years, and now is the right time for this combination, which we believe will create the premier fintech solutions provider for credit unions and make our combined organization an even stronger resource for the credit union ecosystem. We are excited to bring together our talented employees, complementary solutions, key partnerships and extensive client relationships – all under our shared commitment to the ‘people helping people’ credit union philosophy – to fuel growth and accelerate innovation for credit unions.”
PSCU and Co-op will continue to operate as two independent companies until the close of the transaction, which is expected to be completed by the end of December 2023 following the successful vote of both organizations’ Owner/shareholder bases, as well as other customary closing conditions. Following the close of the transaction, PSCU and Co-op will begin operational integration under a holding company led by a combined board and executive management team, with headquarters in St. Petersburg, Fla.
“The speed of change continues to accelerate, along with the need to deliver more complex technology and solutions for credit unions and their members,” said Dean Michaels, president and CEO of Co-op Solutions. “We believe this combination will offer an unprecedented opportunity to meet the demands of the modern credit union member, enable agile technology development and provide the scale to help credit unions compete and win in the financial services market. Co-op and PSCU have adeptly responded to market needs by delivering the solutions, services, support and flexible integration points to help credit unions succeed. This momentum, in concert with the combination, is an incredible opportunity for Co-op and PSCU, as well as for our employees, credit unions and the industry as a whole.”
With a full portfolio of solutions from PSCU and Co-op, the combined company will be positioned to more effectively serve the evolving needs of credit unions and their members, while ensuring long-term financial stability. Together, the companies will provide:
An open environment with integrated solutions to create an enhanced, end-to-end product portfolio with offerings from each organization – including access to instant payments, data analytics, digital banking, fraud and risk management, contact center solutions and services, collections, a credit union debit network, an ATM network and shared branching
Increased scale, meaningful value and additional growth opportunities for credit unions through enhanced product development resources, optimized third-party spend and reduced overhead to allow for expanded levels of re-investment back into the combined company, supporting a continued growth trajectory and meeting the future fintech needs of credit unions and their members
A combined talent base that optimizes service, creating the most knowledgeable and experienced team serving the credit union industry
Innovative tools to expand self-service capabilities and increase efficiency
Solution bundling opportunities to better deliver efficient capabilities to credit unions of all sizes
Continued support and advocacy via a collective voice (including the ongoing fight against interchange legislation), while leveraging the two organizations’ mutual commitments to further champion diversity, equity and inclusion (DEI) in the credit union industry
“The decision to combine with Co-op comes at a time when the payments landscape continues to see rapid evolution, with innovation and technology reshaping the needs of our industry and financial institutions,” said Frank Weidner, chair of the PSCU Board and president and CEO of Wings Financial Credit Union. “With their collective history and expertise, PSCU and Co-op have an unparalleled understanding of the credit union space. We believe that we are stronger together, and we look forward to the new opportunities for success that this combination will provide for credit unions.”
The leadership team of the new combined organization will be announced when the transaction is complete, while the combined Board of Directors will comprise credit union CEO representation from both current Boards, including nine members from the current PSCU Board and four members from the current Co-op Board.
“Credit union growth and member experience are the shared central mission of PSCU and Co-op,” said Joan Opp, chair of the Co-op Board and president and CEO of Stanford Federal Credit Union. “Our combined Board of credit union CEOs reaffirms our commitment to credit unions, and credit union ownership of the key technologies and services needed to compete in the broader financial services space, ensuring that credit unions succeed and thrive. While both PSCU and Co-op are already leaders in the credit union space, together, we’re confident that this combination will help more credit unions sustain growth and meet the evolving needs of their members.”
In addition to Weidner, the members of the current PSCU Board who will serve as members of the combined company’s Board are:
Craig Esrael, president and CEO of First South Financial Credit Union, Tenn.
Sean Rathjen, CEO of Consumers Credit Union, Ill.
Andrew Rosen, president and CEO of Hawaii State Federal Credit Union, Hawaii
Chris Shockley, president and CEO of Virginia Credit Union, Va.
Amy Sink, CEO of Interra Credit Union, Ind.
Rob Stuart, president and CEO, OnPoint Community Credit Union, Ore.
Nathanael Tarwasokono, president and CEO of Firstmark Credit Union, Texas
Cathie Tierney, president and CEO of Community First Credit Union, Wis.
The members of the current Co-op Board who will serve as members of the combined company’s Board are:
Jackie Buchanan, president and CEO, Genisys Credit Union, Mich.
Dennis Devine, president and CEO, Alliant Credit Union, Ill.
Ezra Eckhardt, president and CEO, Spokane Teachers Credit Union, Wash.
Rudy Pereira, president and CEO, Premier America Credit Union, Calif.
The following PSCU Associate Directors will remain in the same roles as part of the new combined Board:
Christine Blake, president and CEO, Cardinal Credit Union, Ohio
Todd Lane, president and CEO, California Coast Credit Union, Calif.
Maria J. Martinez, president and CEO, Border Federal Credit Union, Texas
Mark Robnett, president and CEO of Justice Federal Credit Union, Va.
Opp will serve in an advisory capacity to the new combined Board for a period of one year. As previously planned, Cathy Pace, president and CEO of Allegacy Federal Credit Union (N.C.) and Jeff March, president and CEO of Citadel Federal Credit Union (Pa.) will retire from the PSCU Board at the end of this year.